The companies have said they intend to establish a joint venture for the integrated production of green hydrogen, ammonia and other derivatives across the countries, with potential to be exported to northern Europe.

H2 View understands the collaboration plans to leverage on Iberdrola’s vast renewable energy development experience and global customer base, and bp’s experience in gas and process systems, marketing and worldwide customer base.

bp’s Castellón refinery green hydrogen project in Spain is set to form part of the deal, with other industrial projects under development by both bp and Iberdrola set to come under the agreement, with a goal of finalising the constitution of the joint venture by the end of 2022.

Read more: bp, Iberdrola and Enagás join forces on green hydrogen in Valencia

Under the same agreement, the companies plan to establish a further joint venture to deploy a network of fast and ultra-fast public electric vehicle charging points in Spain and Portugal.

Ignacio Galán, Chairman of Iberdrola, said, “With this agreement, we continue to make progress in decarbonisation and energy self-sufficiency through the electrification of two key sectors of our economy, transport and industry.

“The dimension of this challenge requires alliances between companies such as Iberdrola and bp, which have the necessary technology and knowledge to help accelerate industrial development in Europe and, at the same time, generate well-being and new opportunities for all through clean energies.”

In May (2022), Galán announced that the Spanish utility company would invest €3bn ($3.038bn) in green hydrogen to accelerate the European Green Deal.

Read more: Spanish utility company says it will invest €3bn in green hydrogen

Bernard Looney, CEO of bp, added, “The development of low-carbon energy solutions that our customers demand requires the integration of different technologies, capacities and forms of energy, and we will be able to achieve it faster and on a larger scale by working collaboratively with others.

“We hope that the strategic agreement with Iberdrola will become a clear example of this: from renewable energies to large engineering projects, passing through customers and digitization, we have the necessary complementary experience and capabilities. Working together we can offer innovative solutions that respond to the challenge of decarbonisation at scale to accelerate the energy transition.”

The ‘huge’ role for hydrogen in bp’s future business

He’d only been in the job for two weeks when in February 2020 CEO Bernard Looney set out bp’s biggest revamp in the British business’ 113-year history: to become a net zero company by 2050 or sooner, and to help the world get to net zero.

“We have been listening to investors, partners, policymakers, NGOs, academics, the media – and, of course, my colleagues at bp. And everywhere I have been – inside bp as well as outside – I have come away with one inescapable conclusion. We have got to change. I do not say that lightly, because I love this company,” Looney said at the ambition launch event in February 2020.

“But we have got to change – and change profoundly. We have to because the world is changing fast, and so are society’s expectations of us. But it is more than having to change – we want to change. We want to change because it is the right thing for the world, and it is a tremendous business opportunity for bp.”